The narrative surrounding Jiyue Auto is steeped in both ambition and turmoil, signifying a critical juncture for the company as it grapples with mounting challengesRecent reports indicate that Baidu, once a key investor, may withdraw its financial support, further complicating the landscape for the electric vehicle manufacturerThis situation places Jiyue squarely within the eye of the storm, where the confluence of market pressures and operational bottlenecks demands immediate scrutiny.

The electric vehicle (EV) sector in China has been a hotbed of activity, with new players emerging at an unprecedented paceAmong these, Jiyue Auto, born from a partnership between Baidu and Geely, initially appeared poised to make a significant impactJiyue aims to craft a high-end, intelligent automotive brand by leveraging Baidu's cutting-edge technology and Geely's manufacturing prowessHowever, recent events suggest that this once-promising venture may be floundering.

As of late, Jiyue has entered a so-called "2.0 startup phase." The company claims that the adjustments being made are merely operational, indicating that vehicle services will continue as usual, including maintenance and support for existing commitments

However, the allegations of delayed customer vehicle deliveries, along with financial irregularities involving supplier payments, indicate a deepening crisisOne incident involved a supplier from Hangzhou publicly demanding payment on a hefty bill that had long been overdue, underscoring the strain Jiyue faces in maintaining its operational relationships.

In stark contrast to competitors like BYD, which is in a position to demand cost reductions from suppliers, Jiyue's image is tarnished by its inability to honor basic financial obligations and fulfill claims of outstanding duesThis illustrates an uncomfortable reality: while the market is rife with ongoing developments and competition, Jiyue struggles to keep pace, generating less consumer interest and engagement.

Public sentiment has taken a hit as rumors of mass layoffs have circulated online, alleging that nearly 40% of Jiyue's workforce could be affected

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Although the company has officially refuted these claims, asserting that they are baseless gossip aimed at undermining its credibility, the presence of employee discontent is palpableAdding to the tension, some employees have started to openly question their job security during company livestreams, revealing a distressing window into the company's internal morale.

Jiyue Auto's origin story is quite uniqueIt first emerged as Jidu in March 2021, alongside the burgeoning EV trend in ChinaThe intent was clear: to fuse the extensive resources of Baidu—an internet giant with a strong focus on autonomous driving technologies—with Geely's manufacturing capabilitiesHowever, as the months have progressed, the anticipated synergy seems to have dissipatedBy mid-August 2023, Jidu was rebranded as Jiyue, marking a decisive shift as Baidu receded from the spotlight, leaving Geely to bear the brunt of responsibilities.

This strategic retreat from Baidu raises pertinent questions about its commitment to Jiyue and its broader automotive ambitions

Initially, Baidu harbored dreams of creating an autonomous driving paradise, and while it retains a flourishing business in AI-driven solutions, the reality of Jiyue's performance has fallen short of expectationsSince Baidu was unable to secure the necessary vehicle manufacturing license, its eventual withdrawal became almost inevitable, couched in the uncomfortable reality of a struggling investment.

Geely, on the other hand, is fully immersed in its own projects, notably focusing on its premium electric brand, Zeekr, among other subsidiariesAs a result, Jiyue risks becoming an overlooked child within Geely's extensive portfolio of automotive endeavors, a sentiment echoed by observers who note Jiyue's lack of competitive standing in an increasingly saturated market.

As the automotive landscape in China grows more competitive, the stakes continue to escalateLast month, NIO's Li Bin remarked on the intense challenges facing the industry, suggesting that we are entering a period of unprecedented consolidation

For Jiyue, this highlights a critical challenge: to achieve meaningful sales traction that reflects its potentialRecent figures show that Jiyue's monthly deliveries hover around 2,485 units—a far cry from the thousand-unit benchmark many competitors meet on a daily basisSuch underperformance casts a long shadow over its viability.

Clearly, Jiyue must reevaluate its strategy and find ways to bolster its brand visibilityConsumer interest is essential, and aligning product offerings with market expectations could aid in reviving its fortunesThe company's future, as outlined in communications from both Jiyue and its CEO, Xia Yiping, reveals a drive toward self-rescueSeeking new investment partners has become a pivotal priority, suggesting a recognition of the need for reinvention and perhaps a reevaluation of its operational scope.

What lies ahead for Jiyue remains uncertain